Coyotes deny that NHL is in control

by Craig Harris - Apr. 29, 2009 10:04 PMThe Arizona Republic

The NHL, which loaned the Coyotes money in February to keep the team in business, is now running the franchise and has promised Glendale that it would reimburse the city for parking fees and security costs owed by the team, Glendale City Manager Ed Beasley said.

"The NHL is in charge of the team right now," Beasley said. "We have assurances from the NHL the money will be paid. . . . We are sitting down with the NHL and working confidentially with them, and the city expects to be paid in full."

Coyotes President Doug Moss refuted that report late Wednesday night, saying the league has not assumed control of the Coyotes.

"We are not reporting to the league," he said. "We report to (owner) Jerry Moyes. I'm dealing with things in my area, the business side, and Donnie (General Manager Don Maloney) is dealing with the hockey side.

"It's business as usual. He's preparing for the draft. I'm preparing for next year on marketing and sales."

The NHL has helped other financially challenged teams, and since the 1980s it has loaned money to franchises in Dallas, Buffalo, New York, Tampa, Pittsburgh, St. Louis and Hartford, according to publicly filed financial statements. However, having a league operate one of its own franchises is rare in professional sports.

Beasley said the NHL started running the team around the time the rent payment was made in late February. It remains unclear what role the NHL has in operating the franchise.

In August, the Coyotes stopped paying the city rent, parking fees and most of its security costs at Jobing.com Arena, according to Glendale city records. The city was paid nearly $351,000 for past-due rent on Feb. 25, the day after the NHL agreed to loan the team an unspecified amount.

As part of the loan agreement, the league had the right to take over the franchise if NHL loan was not paid.

"We have been told from the NHL that they are responsible for the team," Beasley said.

Beasley declined to say how much was owed in parking fees and security cost at Jobing.com Arena, home of the Coyotes.

City records show that over the past four years, from August to April - the current time frame the city has not been paid - the Coyotes paid Glendale from $577,000 to nearly $2.5 million for parking and security costs.

Most of that comes from parking fees the team collects as a surcharge on ticket sales, which allows those attending events at the arena to park for free.